Funding nearly in place for projects
Aug. 14—Funds generated by the city's proposed transient room tax, along with funds freed up from retired debt, should be enough to cover the bond payments on a permanent downtown boat dock and an indoor sports complex, Angela Waninger, the city's finance director, said last week.
Waninger said the city plans to do a joint bond to fund construction of both projects. The cost of the boat dock is estimated at $9.5 million, while consultants previously told commissioners an 88,000-square-foot indoor sportsplex would cost between $16 and $17 million.
City commissioners are scheduled to hold second reading Tuesday on an ordinance to create a 4% transient room tax for hotels and other rentals, such as airbnb. Waninger said if commissioners approve the rate, the tax could go into effect in September.
The revenue from the tax should cover the debt service on the sportsplex's portion of the bond, Waninger said. For the boat dock, funds will be available from bonds that were recently paid off.
"We have a couple of bonds that have matured. That frees up the general fund money" used to pay those bonds, Waninger said.
The bonds were used to provide funding to the RiverPark Center and to pay for a number of city projects, such as improvement at parks and street work, Waninger said.
The bond for the RiverPark "was to help RiverPark Center pay off its debts," she said.
The city is considering a 20- or 25-year joint bond for the projects.
"One bond issue is cheaper than two," she said.
The city doesn't have bids on either project yet, and the sportsplex plan is still in the early stages. The costs of both projects could be lower that anticipated when officials began discussing them, Waninger said.
"Steel is coming down on price," as is the price of wood, she said.
If the hotel tax is approved, the city will start collecting funds for the sportsplex long before the project is ready for bid.
"Once we have second reading and its filed, it's effective," she said.
James Mayse, 270-691-7303, jmayse@messenger-inquirer.com, Twitter: @JamesMayse
